In accordance with the Paid Family and Medical Leave (PFML) statute, the Department of Family and Medical Leave (DFML) in Massachusetts has announced changes to the contribution rates and the amount of the weekly payment that will take effect on January 1, 2024.
Benefit Amount Per Week In 2024, the maximum weekly PFML benefit that eligible workers might get would be $1,144.90 per week, and this amount would be in effect. The weekly benefit amount, which had been capped at $1,129.82 in 2023, has since been raised.
Contribution Rates: For the year 2024, the aggregate PFML contribution rate for employers with 25 or more covered individuals has increased from 0.63% to 0.88% of eligible salaries up to the social security taxable maximum. The PFML contribution rate for smaller companies, defined as those with less than 25 individuals covered by the plan, increased from 0.318 percent to 0.46%.
The following provides further information regarding the distribution of those contributions between employers and employees.
Employers with 25 or More Individuals Who Are Covered Under the Plan: The necessary medical leave contribution is 0.70%, and the family leave contribution is 0.18% of an individual’s qualified income. Together, these two contributions equal the total 0.88% contribution rate. Employers are permitted to deduct up to 0.18% of an employee’s wages that are eligible for family leave and up to 0.28% of an employee’s wages that are eligible for medical leave in order to contribute to the respective benefits. The remaining 0.42% of salaries that are eligible for medical leave must be contributed by employers on behalf of their employees. This contribution is referred to as the “employer share.”
Employers with Fewer Than Twenty-Five Insured Employees: The total contribution rate of 0.46% is broken down as follows: medical leave contributes 0.28%, family leave contributes 0.18%, and both together provide 0.46%. Employers have the option of deducting the full amount of an employee’s contribution from salaries that qualify for the programme. Smaller employers, as opposed to bigger businesses, are not obligated to make a contribution towards the amount of an individual’s medical leave contribution.
These adjustments will take effect on the first of the year 2024. Employers are responsible for ensuring that their PFML policies and payroll systems are updated to reflect the changes.
Employers who have a private or self-insured plan that has been approved by the DFML are exempt from the requirement that they contribute to the PFML on behalf of the Commonwealth. These businesses will need to make changes to their private plan so that it reflects the new employee contribution rates and the increased benefit levels that are available.
Notice of these alterations must be given to employees by their respective employers as per the requirements. The DFML has not yet completed the process of updating the postings and notices for 2024. We are going to keep an eye on the DFML website, and when the revised materials are made available to employers, we will let them know.
